The Russian example: Spreading development far and wide

Sept 19 2013

Ajay Kamalakaran

The Zolotoy Rog bridge was built in Vladivostok ahead of the 2012 APEC Summit. Source: Blongman

Russia has chosen various locations for international summits and major sporting events, which bring with them better infrastructure and greater development. India would be well-served to follow suit and move away from its Delhi-centric policy.

One of the most common grievances that one hears in both
Russia and India is that development is centred around the capital. The farther
away a person lives from Moscow or New Delhi, the greater is his critique of
the authorities for not doing enough in terms of local infrastructure. By all means, Moscow has ‘First World’ public
amenities and Delhi, over the last 2 decades, has overtaken Mumbai in terms of
infrastructure and overall development. It would be fair to say that living in
the capital cities of Russia and India comes with privileges that are often
denied to those in smaller regions of these large countries, but it’s only
Moscow that seems to have woken up to this reality.

For starters, look at the approach the two countries have
towards their easternmost territories. Vladimir Putin, years ago, understood
the strategic value of the Russian Far East, an area that went into severe
decline after the collapse of the Soviet Union. From his first term as
president, massive efforts were launched to revive the economies of the region.
Foreign companies were invited to Sakhalin in production sharing agreements and
the island went from being a backwater near Japan, to a hub of economic
activity. The most important initiative to reinvigorate the region was the
decision to host the APEC Summit in Vladivostok in 2012. Russia spent more than
$20 billion to host the summit and most of the money went into large
infrastructure projects in the city, including two bridges that are engineering
marvels. The city received a boost in international visitors during and after
the summit and there are several business opportunities that became prevalent
there after it was put on the international map.

Compare the Russian attitude to its far east with that of
India’s virtual disinterest in its 7 northeastern states. India’s troubled
northeast, by virtue of geography, is a bridge between South and Southeast
Asia. The region would ideally serve as a gateway for the once-again booming
economies of ASEAN into India. It’s disappointing though that no efforts are
being made to develop these states and integrate them with the ASEAN region.
Bangkok and Kuala Lumpur are closer to some parts of India’s northeast than
Mumbai. Yet, there seems to be a lack of vision to use the low costs and
location of these eastern states to gain an economic edge. Will we see a day
when a major Asian summit is held in a city like Guwahati in Assam? The small
city on the Brahmaputra is one of the least developed state capitals in all of
India, when it should be a major hub for trade and tourism for India and
Southeast Asia.

Besides hosting the APEC summit in Vladivostok, Russia chose
the city of Yekaterinburg as a candidate for the 2020 World Expo. If the city
gets chosen to host the expo, the region which is in the middle of the Eurasian
continent will benefit enormously. For the Winter Olympics, Russia chose the
city of Sochi, which is now the beneficiary of several major infrastructure
projects. Sochi will also host Formula 1 racing. India, on the other hand,
hosts its prestigious car race just outside Delhi. There is talk that the
country may lose the race because of political reasons, but let’s put that
aside for now. Delhi was also the host of the 2010 Field Hockey World Cup and
the much-maligned Commonwealth Games in the same year. There are some in India who think this
Delhi-centric attitude borders on arrogance and a lack of respect for other
cities and regions in India.

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For India to become a more developed and middle income
country, it needs to follow the Russian example and put big-ticket
international events in different parts of the country. These events would give
a boost to the support infrastructure in the areas surrounding the host cities.
A direct consequence would be more employment opportunities in these areas and
an arrest in mass migration to cities like Mumbai that are already close to
crumbling point.

India doesn’t look like a likely host for any major sporting
competition or international summit at the moment but smaller cities and
regions can be used for other important international events and meetings.
Russia’s deputy prime minister (and good friend of India) Dmitry Rogozin said
earlier this year that official meetings should be held in different parts of
the large and diverse countries. “We are two great beautiful countries, with an
endless diversity of regions,” Rogozin said in April. “I am keen to visit
different cities in India, and I'd be happy to take you to our next meeting to
the Far East, the Urals, Siberia and Sochi, where we will be hosting Winter
Olympics next year.”

One can only hope that India takes Rogozin’s advice and also
follows the example that Russia has set in terms of development spread across
the country.